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EXHIBIT 99.1
CUBIST PHARMACEUTICALS PURCHASES NEW CORPORATE HEADQUARTERS IN LEXINGTON, MA
Company to Issue $39 Million in Convertible Notes
CAMBRIDGE, Mass., Sept. 15 -- Cubist Pharmaceuticals, Inc. (Nasdaq: CBST) today
announced the purchase of new corporate headquarters at 65 Hayden Avenue in
Lexington, Massachusetts. The new facility is 88,000 square feet, approximately
35,000 of which is constructed as laboratory space. Currently occupying three
buildings in Cambridge, Cubist believes this consolidation should increase its
operating efficiencies to better meet its corporate goals and objectives and
plans to relocate to the facilities in the third quarter of 2001.
(Photo: http://www.newscom.com/cgi-bin/prnh/20000717/CUBELOGO)
To finance the purchase, Cubist is issuing $39 million in
convertible notes to John Hancock Life Insurance Company. This financing covers
the building purchase price of approximately $34 million and includes $5 million
for leasehold improvements. The five-year notes carry a coupon rate of 8.5% and
can be converted to Cubist common stock at a premium to the market price
determined at time of commitment. Cubist retains a right of redemption after 3
years.
Thomas A. Shea, Vice President of Finance & Administration and CFO
of Cubist commented on the transaction, "Due to the successes we've had over the
past few years and the subsequent growth at Cubist, it has become evident that
we will soon outgrow our space in Cambridge. We are extremely pleased to have
found such a great opportunity in Lexington. In addition," Mr. Shea continued,
"the structure of the financing not only allows for minimal drain of our cash
resources, but also, as a result of purchasing the building outright, allows us
to remove the current lease costs from our operating expense line, which will
have an increasingly important effect on our bottom line as Cubist approaches
profitability."
Bay City Capital acted as advisors to Cubist Pharmaceuticals for
this transaction.
Cubist Pharmaceuticals is focused on becoming a global leader in the
research, development and commercialization of novel antimicrobial drugs to
combat serious and life-threatening bacterial and fungal infections. Cubist is
evaluating the safety and efficacy of Cidecin(TM) (daptomycin for injection) in
the EDGE(TM) (Evaluation of Daptomycin in Gram-positive Entities) clinical trial
program and is engaged in multiple, strategic partnerships, including Novartis
Pharma AG and Merck & Co. for the discovery and development of novel
antiinfectives.
CUBIST SAFEHARBOR STATEMENT
Statements contained herein that are not historical fact may be forward- looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, that are subject to a
variety of risks and uncertainties. There
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are a number of important factors that could cause actual results to differ
materially from those projected or suggested in any forward-looking statements
made by the Company. These factors include, but are not limited to: (i) the
Company's ability to successfully complete product research and development,
including pre-clinical and clinical studies and commercialization; (ii) the
Company's ability to obtain required governmental approvals; (iii) the Company's
ability to attract and/or maintain manufacturing, sales, distribution and
marketing partners; and (iv) the Company's ability to develop and commercialize
its products before its competitors. Additional factors that would cause actual
results to differ materially from those projected or suggested in any
forward-looking statements are contained in the Company's filings with the
Securities and Exchange Commission, including those factors discussed under the
caption "Risk Factors" in the Company's Annual Report on Form 10-K/A (file No.
000-21379) filed on April 3, 2000.
Contacts:
Cubist Pharmaceuticals, Inc.
Jennifer LaVin
Senior Director,
(617) 576-4258
[email protected]
Noonan/Russo Communications
Chris Morrison - media
Corporate Communications (212) 696-4455 ext. 230
[email protected]
SOURCE Cubist Pharmaceuticals, Inc.
Photo: http://www.newscom.com/cgi-bin/prnh/20000717/CUBELOGO AP
Archive: http://photoarchive.ap.org PRN Photo Desk, 888-776-6555
or 201-369-3467
Company News On-Call: http://www.prnewswire.com/comp/119304.htm
or fax, 800-758-5804, ext. 119304
CONTACT: Jennifer LaVin, Senior Director of Cubist
Pharmaceuticals, Inc., 617-576-4258, [email protected], or Chris
Morrison - media, Corporate Communications of Noonan/Russo
Communications, 212-696-4455 ext. 230, [email protected]
CAPTION: CUBELOGO CUBIST PHARMACEUTICALS LOGO Cubist
Pharmeceuticals Logo. (PRNewsFoto)[AG] CAMBRIDGE, MA USA
07/17/2000
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